Meghalaya was unable to meet “key” fiscal targets set for selected parameters laid down in the Meghalaya Fiscal Responsibility and Budget Management Act (MFRBMA) or 14th Finance Commission for 2018-19, the State Finances Audit Report of the Comptroller and Auditor General (CAG) has revealed.
In its report, the CAG pointed out that both the commission and the MFRBMA set out certain targets, namely that the state maintain a revenue surplus, limit its fiscal deficit to 3 percent (under the Finance Commission) or 3.25 percent (under the MFRBMA) of state gross domestic product (GSDP) and limit total outstanding liabilities to 27.86 percent of GSDP (under the Finance Commission only).
Instead, Meghalaya had a revenue deficit of Rs 537.32 crore in 2018-19, a fiscal deficit of 5.89 percent of GSDP and total outstanding liabilities of 30.89 percent.
“The prevalence of fiscal deficit during 2014-19 indicated continued reliance of the state on borrowed funds, resulting in increasing fiscal liabilities of the state over the period 2014-19,” the report said, adding that fiscal liabilities increased 12 percent in 2018-19 over the previous year.
